We came across a bearish thesis on Progress Software Corporation on Valueinvestorsclub.com by MCM20. In this article, we will summarize the bears’ thesis on PRGS. Progress Software Corporation's share was trading at $40.99 as of February 2nd. PRGS’s trailing and forward P/E were 24.65 and 7.03 respectively according to Yahoo Finance. 10 Must-Buy AI Stocks to Invest In Progress Software Corporation provides software products that develops, deploys, and manages artificial intelligence (AI) powered applicat ...

Group 1 - Progress Software Corporation (NASDAQ:PRGS) is highlighted as a promising small-cap tech stock for investment, with a focus on its infrastructure software outlook for 2026 [1][4] - Citi has reduced its price target for Progress Software from $57 to $54 while maintaining a Buy rating, anticipating that the sector's strong momentum will continue into 2026 [1][4] - Jefferies has lowered its price target for Progress Software from $50 to $45, maintaining a Hold rating due to a cautious outlook for 2026, emphasizing the need for significant growth acceleration in AI monetization [2][3] Group 2 - Jefferies advises investors to be patient and selective as sector valuations align with historical averages, while remaining confident in the long-term value within the software layer [3] - Progress Software provides software products that develop, deploy, and manage AI-powered applications and digital experiences both in the US and internationally [4]

​Progress Software Corporation (NASDAQ:PRGS) is one of the Best Small Cap Stocks Ready to Explode in 2026. Wall Street is bullish on the stock since the company released its fiscal Q4 2025 earnings on January 20. Recently, on January 22, Fatima Boolani from Citi raised the firm’s price target on the stock from $54 to $60, with a Buy rating. Earlier, on January 21, Lucky Schreiner from D.A. Davidson also reiterated a Buy rating on Progress Software Corporation (NASDAQ:PRGS) with a $70 price target. ​Durin ...

Core Insights - Progress Software (PRGS) reported total revenue of $252.67 million for the quarter ending November 2025, reflecting a year-over-year increase of 17.5% [4] International Revenue Breakdown - Latin America contributed $5.54 million, accounting for 2.2% of total revenue, which was a decline of 11.77% compared to the expected $6.28 million [5] - Europe, Middle East, and Africa generated $72.59 million, representing 28.7% of total revenue, exceeding the consensus estimate of $69.04 million by 5.14% [6] - Asia Pacific accounted for $16.15 million, or 6.4% of total revenue, surpassing expectations by 35.13% as analysts had forecasted $11.95 million [7] Future Revenue Predictions - Analysts predict total revenue of $245.51 million for the current fiscal quarter, indicating a 3.2% increase from the prior year, with regional contributions expected to be Latin America at $5.35 million, Europe, Middle East, and Africa at $70.1 million, and Asia Pacific at $15.59 million [8] - For the entire year, total revenue is forecasted to be $989.52 million, a 1.2% improvement from the previous year, with regional contributions expected to be Latin America at $21.62 million, Europe, Middle East, and Africa at $283.27 million, and Asia Pacific at $63.02 million [9] Market Context - The reliance on international markets presents both opportunities and challenges for Progress Software, making the analysis of international revenue trends crucial for forecasting future performance [10] - Analysts monitor these trends closely, as they can significantly influence earnings forecasts and stock price movements [11]

Core Viewpoint - The article compares Progress Software (PRGS) and Intuit (INTU) to determine which stock is a better undervalued investment opportunity for investors interested in Computer - Software stocks [1]. Group 1: Zacks Rank and Earnings Estimates - Progress Software has a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision activity, while Intuit has a Zacks Rank of 4 (Sell), suggesting a less favorable analyst outlook [3]. - The Zacks Rank emphasizes earnings estimates and revisions, which are critical for investors assessing stock potential [2]. Group 2: Valuation Metrics - PRGS has a forward P/E ratio of 7.35, significantly lower than INTU's forward P/E of 22.69, indicating that PRGS may be undervalued relative to INTU [5]. - The PEG ratio for PRGS is 1.47, while INTU's PEG ratio is 1.60, suggesting that PRGS offers better value when considering expected earnings growth [5]. - PRGS has a P/B ratio of 3.83 compared to INTU's P/B of 7.56, further indicating that PRGS is more attractively valued based on market value versus book value [6]. Group 3: Value Grades - Based on various valuation metrics, PRGS holds a Value grade of A, while INTU has a Value grade of D, reinforcing the notion that PRGS is the superior choice for value investors at this time [6].

Progress Software ( PRGS ) has emerged from its quarterly results with a modicum of strength, and the value of this under-the-radar AI software company is indeed tempting. Though with a 25% decline since my lastAnalyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than fr ...

Core Insights - Progress Software (PRGS) has shown a degree of strength in its quarterly results, indicating potential for growth in the AI software sector [1] - The company's stock has experienced a 25% decline since the last analysis, suggesting a possible undervaluation [1] Company Performance - The quarterly results reflect a modest strength, which may attract investor interest in the AI software market [1] - The decline in stock value could present a buying opportunity for investors looking for undervalued assets in the technology sector [1]

Core Insights - Progress Software's shares increased over 10% following the announcement of strong fourth-quarter financial results and a positive outlook for the upcoming year [1] Financial Performance - Revenue for the fourth quarter rose 18% year over year to $253 million [3] - Operating income surged 78% to $38.4 million, with an operating margin increase of 5 percentage points to 15% [3] - Operating cash flow increased significantly by 220% to $62.8 million [3] - Adjusted earnings per share rose 14% to $1.51, exceeding Wall Street's estimate of $1.31 [4] Future Guidance - The company projects revenue between $986 million and $1 billion for fiscal 2026 [5] - Expected full-year earnings per share are forecasted to be between $1.74 and $1.91, with cash from operations estimated at $263 million to $277 million [5] - CEO Yogesh Gupta emphasized the company's commitment to long-term growth strategies, including investment, innovation, acquisition, and customer success [5]

Core Insights - Progress Software (PRGS) reported fourth-quarter fiscal 2025 non-GAAP earnings of $1.23 per share, exceeding the Zacks Consensus Estimate by 20.59% and reflecting a year-over-year increase of 14.9% [1] - Non-GAAP revenues reached $252.7 million, slightly missing the consensus mark by 0.01%, but showing an 18% increase year-over-year and a 16% increase on a constant currency basis, driven by strong demand for products like ShareFile, OpenEdge, WhatsUp Gold, and DevTools [1][2] - Annualized recurring revenues (ARR) were $852 million, up 2% year-over-year, with a net retention rate surpassing 100% [2] Financial Performance - Software license revenues were $65.2 million, down 11.2% year-over-year, while maintenance and service revenues increased by 32.4% to $187.5 million [3] - The overall product portfolio's strong performance, particularly in the second half of the year, was fueled by customer AI projects and the integration of ShareFile [3] - Non-GAAP operating margin expanded to 38.1%, an increase of 100 basis points year-over-year [4] Balance Sheet and Cash Flow - As of November 30, 2025, cash and cash equivalents were $95 million, down from $99 million as of August 31, 2025, with total debt at $1.4 billion and a net debt position of $1.3 billion [5] - Cash flow from operations for the trailing 12 months was $235.2 million, compared to $211.5 million in the previous year [5] Share Repurchase and Acquisitions - The board of directors increased share repurchase authorization by $200 million to a total of $242.2 million [6] - The integration of the ShareFile acquisition was completed ahead of schedule, and the acquisition of Nuclia's agentic RAG technology has been positively received by clients [9] Guidance for Fiscal 2026 - For Q1 fiscal 2026, non-GAAP revenues are expected to be between $244 million and $250 million, with non-GAAP earnings projected between $1.56 and $1.62 per share [10] - For the full fiscal 2026, non-GAAP revenues are projected between $986 million and $1 billion, with an expected operating margin of 39% and earnings between $5.82 and $5.96 per share [11] - Adjusted free cash flow is anticipated to be between $313 million and $326 million for fiscal 2026 [12]

So far, stock markets are off to a rocky start in 2026. Investors are questioning high multiples in the S&P 500, set against a tough backdrop of rising macroeconomic uncertainty, especially with the potential for new European tariffs on the horizon.With combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a r ...